• Located in the San Dimas mining district in Mexico's epithermal silver belt.
  • Gavilanes is located 25 km east of the Tayoltita mine and within the same mineralized trend as Tahuehueto, Cienega and Basis.
  • Indicated mineral resources of 6,143,000 AgEq ounces grading 200 g/t AgEq.*
  • Inferred mineral resource of 28,294,000 AgEq ounces grading 163 g/t AgEq.*
  • Veins remain open along strike and to depth with intermittent surface exposures indicating an untested strike length
  • The El Hundido stockwork is open down-dip and to the south.
  • Four unexplored veins offer additional potential.
  • Continued drilling in 2014 planned with a target to increase resources.
*Mineral Resources:

The tables below summarize results of the estimates and provide a range over various cut-off grades:

Click to view larger version

The metal prices used in the silver equivalent estimate are listed below.

Click to view larger version

100% recovery has been assumed for all metals in this silver equivalent estimate. At this stage of the project no metallurgy has been completed and the reader is cautioned that 100% recoveries are never achieved.

The resource estimate was calculated based on 9,623.9 metres of HQ diamond drilling in 47 drill holes over approximately 750 meters of strike length and a total of 3,362 assays. The resources were defined to a maximum depth of approximately 300 metres below surface with a total of 198 down hole surveys utilized for control.

The resource estimation was completed by Gary Giroux, P.Eng. of Giroux Consultants and utilized a geological model completed by Hans Smit, P.Geo and Fletcher Bourke, P.Geo. The geological model has six domains; Guadalupe vein (GP), GP envelope, Descubridora vein (DS), DS envelope, San Nicloas (SN) envelope and Stockwork Zone. Assays for each vein, envelope and stockwork zone were examined and a top cap was applied to each variable within each domain. Uniform 2.5 m composites were formed for the vein envelopes and stockwork zone while 0.5 m composites were formed for the two vein domains. Variography was completed for the GP vein, GP envelope and the Stockwork zone. Grades for all variables were interpolated into blocks 2.5 x 5 x 5 m using Ordinary Kriging. For blocks with multiple domains present, a weighted average was determined for the mineralized portion. A specific gravity was established for each domain based on 216 measurements of drill core. Estimated blocks were classified as Indicated or Inferred based on geologic and grade continuity.